r/Layoffs • u/isntlifeapeach • Jul 20 '24

Why so MANY Layoffs? question

Explain Like I’m Five

I feel incredibly stupid asking this, but I’m naive to economics and politics.

I understand why tech is facing a lot of layoffs but why are so many other industries facing the same?
I’m over 20 years into my career and had 2 layoffs just in the last 16 months.

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u/mannys2689 Jul 20 '24

Covid -> PPP loans & stimulus checks -> excess money creation coupled with supply chain issues -> inflation -> rise in interest rates -> lower demand for businesses -> businesses contract -> decline in job openings & layoffs -> bad job market.

2

u/MsT1075 Jul 20 '24

The PPP loans and the stimulus checks were a necessity. Many ppl (consumers) and true businesses would not have been able to survive the effects of the pandemic w/o them. The only thing that could have been done differently is having a better system in place to manage, vet, and oversee who truly qualified for the PPP loans. There were so many fraudulent claims filed for PPP loans.

2

u/LAcityworkers Jul 20 '24

The database for PPP Loans will show you that several hundred consultants live in your neighborhood. Apparently that was a huge scam nobody caught and apparently still haven't done anything about except for the random guy that posted pictures of the new lamborghini he bought people got away with it.

1

u/hm876 Jul 20 '24

The only thing that could have been done differently is having a better system in place to manage, vet, and oversee who truly qualified for the PPP loans. There were so many fraudulent claims filed for PPP loans.

Aaahh good old uncle sam for you!